Major Industries: IT Services, Textiles, Automobiles, Oil & Gas, Pharmaceuticals
The economic history of India can be summarized into three main phases: Pre-Colonial, Colonial and Post-Colonial. In pre-colonial times, it was a well-developed economy that was self-sufficient and thriving. However, colonization led to the depletion of resources by the British and brought about tougher economic conditions. Finally, after independence, the rebuilding process began, which carries on to this day. According to Goldman Sachs, India will be the third largest economy in the world by 2035, just behind China and the United States.
Stability of Region
As the world’s largest democracy, India has achieved much in the last decades with stable and diversified long-term growth; stabilisation within agriculture and industry and the transition of the economy towards services sector. Resilience of India’s growth was seen when the country recovered fairly quickly from demonetisation and implementation of indirect tax reforms.
India has risen to become the world’s fifth largest economy by nominal GDP. However, on industry side, several core sectors including auto, real estate and manufacturing are in deep waters. For sustained growth, India needs to regain momentum on the unfinished structural reform agenda and arrive at a durable solution to banking sector issues.
Global factors are at odds with India’s growth outlook but there are still opportunities that the country can use to its advantage. India remains an attractive investment destination due to sheer size of its consumer market. Its strengths in the medium term include having a young population, and as a result, a low dependency ratio. This will undoubtedly result in a fresher, more energetic and vibrant economic landscape. New ideas in a growing country await.